Interview with Jared Vidales

Jared Vidales talks about how he started just three years ago and what his wholesaling operation looks like today!

Video Replay of Interview with Jared Vidales

Podcast Replay of Interview with Jared Vidales

Show Notes:
Coming Soon
Transcription:
00:00 Hey everybody, thank you for joining us for today’s episode of Real Estate Disruptors so that we have Jared Vidales with highest cash offer and he’s going to be sharing how he is earning $250,000 a month on just 25,000 in spend. If this is your first time tuning in, I’m Steve Trang broker owner of Stunning Homes Realty, founder of the offer fast homes APP, the only APP you’ll need for wholesaling, and I’m on a mission to create 100 millionaires, so please message me, reach out to me if you need any help at all with your business. If you’re excited about today’s show, please give me a wave. Give me a thumbs up. And as a friendly reminder, I don’t charge a dime for this show. I don’t make any money doing this. So here’s all I ask. If you get any value out of this show, please tell her friend, you can share this episode right now at Tiger from below or telling your best takeaway from the show later on. That way we can all grow together. Don’t forget, this is a live show, so please post your questions and Jared, be very happy to answer them. You Ready? Ready. All right. So what got you into real estate?

00:56 Okay, so I’m going to give you the short compressed version, right? Just like everybody, you know, just for. I worked corporate forever. Um, I’m sorry, not forever, for a couple of years and just like everybody else, I wanted something greater because I just had a different. I just have a different vision for myself. Um, but long story short, you know, I bought two houses, um, west Phoenix, um, had no clue what I was doing. God a got jacked up and every direction you could. Um, thank God the, um, the real estate market was appreciating so fast I didn’t lose, but what got me into my particular niche of real estate was the wholesaler who sold me those two properties ripped, you know, 15 grand on both and a matter of 10 days. And I ripped, you know, 20 grand, 25 grand a pop over a period of eight months, stress dealing with contractors and do that whole thing.

01:43 So I thought on the flipping side,

01:45 on the flipping side only I started flipping houses, turned out I was not, I, I hated construction, wasn’t my thing, you know, you’re adult at year, um, you know, you’re babysitting just adult children at the end of the day. Um, so, you know, I thought, you know, if this guy could do it, his sale cycle super, super short, mind you, I didn’t come from sales, marketing, anything at all. It was actually, um, got my degree in engineering so I have that problem and I’m like, you know, if this guy could do it, I could do it. So I’m partnered up with Danielle, but I think it was on a show a couple a couple months ago. I’m Jesse Hillary, all awesome people to put together this direct homeowner acquisition strategy to bring the concept was to bring flips into the company so we could flip them at extremely high margin.

02:32 Okay. So you want to be direct to seller so you can flip for just pad at the margins.

02:35 Exactly. You know, my, my, um, the sexy part in my mind was ripping those hundred thousand dollars flip checks, right? And the only way to do that was going off market. The market was compressing and um, the opportunity wasn’t there like it used to be. Um, so, you know, what year was this? Approximately 2015. But mind you, I didn’t, I hadn’t experienced this the sexy time, you know, in the Arizona market, um, got in late 2015 and I’m all direct to homeowner stuff. Started with wholesaling nationwide, did about 145 deals in 2015 every metro in the US it was, it was a shit show all with, um, cell phone, docusign into computer, never met the buyers, never met. The seller’s is 100 percent virtual. Decided. Okay.

03:22 And I think that putting a context I, when we’re talking $250,000 a month, you started 2015. That’s only three years ago. Exactly. Not that long. Not that right. So I mean that trying to put this down in any way, but it only takes three years to get here with hard work. Exactly. So anyway, go ahead.

03:37 Yeah. Well, a little bit obsessive is people know why my brain is always going in different directions, but try to hone it in and stay focused. Um, so did that in 2015 and slowly realized like you can’t build a consistent model or operations on the back end for that matter with every market in the US. So, um, you know, we stroke down at 15 markets, you know, the top Metros and some secondary markets in the US and then shrunk down to what we are today, which is just focus on a Phoenix Vegas, Houston and we’ll do a little bit stuff in California. Um, but yeah, that sounds like it got started.

04:13 Awesome. So I’m going from just straight went from flipping to wholesaling. Tell me about your very first wholesale deal.

04:25 Very first wholesale deal. Okay. So, um, it’s actually a pretty cool one. So, um, is actually when Dan, Danielle, and Jesse and myself are partners. I’m Jesse, you guys know, found a property on hubs zoo.com. I’m on Lafayette Boulevard in Arcadia proper. So we picked this thing up from us bank for Eight, eight, 20 or eight 60. Um, took it down all in. We’re in at like eight, eight, 80, roughly eighty thousand eight hundred eighty thousand dollars deal. So I had like go big or go home, go big or go home. Right? So as a group we took this thing down. I had no clue what I was doing, you know, Danny saw this thing, it was like, this is a great deal. It’s by it. I’m like, sure, let’s do it. Right. Um, took, took it down, leveraged it in. I remember we held it for about two months until we found a buyer for it and every month I had like, I had like 30 grand in my bank account and it’s like, okay jared, you’re Tara, you’re turning for the $10,000 hard money payment. And I’m like, Oh shit. Like this is real estate. Uh, so like we eventually I found a buyer, remax commercial broker, found a buyer actually. And we wholesale it for one point, one seven five, so it worked out, so it worked out. So we made about 266 grand on our first wholesale deal. Three ways. Five ways actually.

05:43 Yeah. Okay. So that’s pretty good. It wasn’t too painful.

05:46 Let’s just do banks for the $10,000 payments. Yes, that was, that was pretty painful. So it was on New Year’s Eve, so we all got to cash our checks and eve.

05:54 Okay. So then what were some of your early struggles? Um, so

05:57 my early struggles was, you know, I, I don’t think I realized that what we do today and I’m direct a homeowner acquisitions, it’s not, it’s not really real estate, really what it is at sales and marketing. Um, and back then I didn’t realize that, so I was just really focusing on the assets, not really focusing on the psychology of the seller, understanding what their issues are and trying to deliver as much value as I could to make it compelling enough for them to work with us, um, as, as a buyer. So, um, and at the end of the day, the, you know, this is all a contact sport, the more touches you make up the greater chance of your conversion. So we were, we weren’t bringing enough leads in back then where we could really throw some serious numbers on the board. It was maybe we went to like, you know, this is back in, you know, when we first first started, like before, like all the nationwide stuff you’re doing, bandit signs were handwriting letters and we’re getting maybe five phone calls a week and like it’s not working, you know, we, we didn’t have the marketing down and we didn’t have the sales process down.

07:01 So that’s what really limited, um, you know, from us really gaining traction.

07:07 Well, I think something you hit on there here, right, it’s a sales and marketing and I think that’s true of every business. Every business is a sales and marketing and business. It’s just whatever the other part you do is that second

07:16 have exactly the product or service is like, is secondary.

07:20 Yeah. Okay. Um, so, you know, we were talking about beforehand before we started here about the velocity and while you’d like to wholesale versus flipped, can you talk about that?

07:31 What makes wholesale so attractive to me, and I’m sure many of your listeners are, you know, that for us, our sales cycle from when a lead comes in to when we get it under contract is on average about 10 days and then really good, really good. And then on the back end, on the transaction side, it’s about 22 days. So if you look at the entire sales sales cycle, say it’s, you know, 32 days from when a lead comes in to when you have cash in the bank, 30. I mean, granted you’re leaving, I mean, in this market, you’re not leaving too much on the table by my, by my, by monetizing the back on the flip, but um, it just so much quicker so that you could bring working capital into your business a lot quicker and um, it’s just a lot less headache on, on the flux fix and flip side, which we do, we do a lot of it. Um, but it’s just a lot faster,

08:22 right? And I think the piece that I was like, man, we can squeeze out another 30 percent more, but the resources we have to spend the squeeze out that 30 percent that we just spend it back on the sales and marketing side that you guys are good at. Exactly. So what will you do differently if you were starting over today?

08:39 If I were to start over today, I’m really, I’m really probably span a little bit more in marketing. Bring that lead flow in. Get. It’s like going to the gym, right? You’re going to talk to as many sellers as you can get reps in, you’re going to get stronger, you’re going to get more experienced and you’re going to be able to convert a lot quicker. I’m a lot better with that experience. So bringing the leads in and getting the sales, the seller psychology and a sales process down. So when you do spend, let’s say when you’re starting out five, 10 grand on marketing, you have the, uh, the capacity to convert and you’re not wasting that money,

09:16 right? So get more no’s fast,

09:18 get more no’s, quit faster, get your reps in, get rejected a lot, a lot quicker. Like the thing we do for every new sales guy who comes into our company, first thing we do, regardless of experience, we throw them on a dialer for two weeks straight. The most unmotivated lists you can think of or training before its aroma. Well there’s, there’s like two days, there’s like two days a scripting like this is what, this is the um, this is the scripting process like you need to follow, go follow it, but you’re gonna get your ass kicked. And the in the bullpen, the point is get their ass kicked. I’m sooner, have them get the reps and have them fail a lot quicker. So you’re practicing overcoming those objections like a lot easier on the crappy non-distressed list. So when it’s game time, when at $100 on PPC lead comes in, it’s not, you’re not practicing on that lead,

10:03 right? And all of that nervousness to exactly is out the window. Cool. I liked that a lot. Um, what do you attribute your success to?

10:14 Great question. Um, I don’t want to sound Corny, but a lot of success, I are a lot of my success I attribute to is probably a lot of. It’s Danielle, she came from the industry. She’s been doing this for like eight, nine years now. She has a ton of the experience, literally everything I know about the logistics of a transaction, how to structure, how to do everything comes from her. So that got me up really, really, really, really fast and I cut my learning curve by a lot. I’m also, man, I guess it’s just my, at the end of the day, I think it’s just my personality, you know, to, you know, I know what I want. I, I, I roughly know how to get there and I’m just, I just executed at the end of the day.

10:58 Well our friend Jesse shared with me that the reason why you’re so darn successful, you’re a master of systems. I think that goes back to your engineering degree. Right, exactly. So I mean, you were, you were an engineer for how long?

11:11 I was an engineer for about two, two and a half years.

11:14 Yeah. So you’re able to leverage some of that technical knowhow.

11:18 Yeah, the technical knowhow, like my brain works in sequences. So being able to sequence every process out, even including the sales process. People think sales is so, so jack subjective, how do you build a process around sales? But if you don’t have a system, that is how it works. If you don’t have a system that’s how it works and you’re not able to identify where were the issue is and if you can’t identify you can’t fix it. So, um, a lot of, a lot of how my brain functions and then also just lost my thought. Um,

11:48 we’re talking about systems. Systems. Yeah. Anyway, okay. So, uh, obviously we have a lot of friends in town that wholesale, right? If we’re not the most competitive market, I would like to know who is, who is more competitive than us. What, how has your operation different than all our friends?

12:04 Like? Um, Kinda like, what I’ve been touching on is I treat my operations like a true sales and marketing organization. We take, and I’m also a lot of the systems and processes. Our sales guys, they only focus on sales, they focus on holding, I’m building the rapport, managing the seller communication and just as many touches and moving as many balls forward every single day as possible. They’re not even underwriting. We have a full time analyst and underwrites all the assets so they’re not thinking. So that’s, that was one of our issues in the past was our acquisition guys were underwriting, underwriting all the deals. And so when they’re getting on the phone to propose the offer, they went straight for the numbers. When obviously you’ve got to warm it up, you got to go through to deal killers and do all that before presenting the offer because he want to elevate the pain.

12:53 So when you’re coming in, you know, what the offer, it’s not that Delta, that gap isn’t in their mind that big. Um, so being able to process like segment all of our departments, our underwriting department, our sales, our sales team, transactions, everybody knows their part. And um, it’s just, we know exactly what return we get on the marketing. So everything, if you look at the organization as a whole, it’s an, it’s just one simple equation. We know for every dollar spent we get x amount of dollars out and everybody is measured, um, that, that aligns with that exact strategy to make sure it all flows down and aggregates the exact number that we expect to see out on our marketing.

13:34 So, you know, what’s funny is like, I think if you were to ask, um, you know, average person, like what, what is, uh, uh, an investor that at cash investor do it right? You got to have this image of this guy that’s like sloppy, right? He’s coming to your house and he’s just trying to low ball you and this and that, right? You don’t think of it as a business. And that’s the thing that I really love about what I started with, with Keighley. What I see with Jamil and Josiah, I see the, Carla’s sounded like what you guys are doing, like you’re running a business, you just happen to be in wholesaling. Exactly. Exactly. So it was really fascinating to see, like you take a lot of the principles that make businesses successful and just applied the wholesaling, which has higher margin.

14:14 creative. Yeah. So as far as sourcing deals, I mean to get 250 k, like what were our top three, four sources,

14:23 top three to four sources. So as you know, we’re owner direct on everything like 99 percent of the time. Um, so our main, I guess sourcing marketing channels kind of. Same thing. I’m telemarketing, we have a um, we have a call center down in Mexico. I’m also a lot of sel online stuff, PPC, Arviat, like all the, you know, everybody’s doing the same stuff at the end of the day. It’s just like for me, it’s being able to have the sales process to a on the back end to monetize that. And also the, the, the lead management process as well as super, super important because for us, um, you know, we’re producing so many leads a day and being able to prioritize and process those leads that that’s the key, I think to strategize your follow up exactly the followup, how you process them, how you deliver the offer, how you talk to them, how you identify the person all the way down to the personality type is what I think converts the leads. Everybody’s getting the same. Exactly. It’s everybody’s cold calling, everybody’s doing online and you know, granted some online guys have a competitive advantage and can know how to rank higher, but it’s all the same stuff at the end of the day. It’s the operations and the sales process that ultimately convert.

15:35 So there’s no particular list that you prefer over any other,

15:37 to be honest, like my distress in my non-distressed lists convert exactly the same.

15:42 Yeah. Interesting. So that’s a very different answer than everyone else. So that’s cool. What does your organization look like today? I mean, obviously you mentioned earlier you got analysts, you’ve got some acquisition guys. Um, so what are the different roles how many people we have in beach,

15:57 right? So if you look at it from, like I just mentioned departments, I’m in a sales department. We have, as of today, we have five full time acquisition guys. Um, we have one analyst. So the acquisitions guys, what is their responsibilities acquisition guys? Responsibilities are to um, I mean honestly, it’s just me managing relationships, so they have their pipeline, they’re getting, you know, between 10 and 15 new leads every single day, staying on top of their new leads, managing their followup bucket, prioritizing or follow up buckets and then proposing and making offers.

16:31 Well, 10 to 15 a day is really good. Yeah. Alright. Okay. So then you got the analysts

16:35 and then um, oh, I guess I’m over the top of that. We have our sales manager who manages all the sales guys because I mean salespeople, I mean they’re all prima donnas. They, it’s like hurting cats, right? So like for me, for me to be stretched further and really try to grow the organization, that was super critical, that took so much time off my plate. Um, so they, he manages his main focus is growing the sales team and uh, both quantity and quality, so I’m constantly recruiting, bringing a brand new sales guys on and then refining them, making sure that they’re constantly growing, constantly learning what our specific niche kind of demands. Um, then our analysts, she underwrites everything, so she’s doing pre contract analysis. So once a new lead comes in, sales guy qualifies it, right. And then if it’s, if they figured out it’s qualified, sends it to the analyst, she underwrites it based on what the seller note condition conveys, puts like a kind of a Ballpark, a target price, and a Max offer price, sends it back to acquisitions. They’re delivering those offers and neither were in negotiation stages or would they accepted or denied? Um, you know, thrown. We’re in negotiations. That’s one more thing for them to follow up on. Um, so that’s how the, that’s how the analysts kind works with the acquisition team. Then obviously we have our transactions, girl, we have um, our bookkeepers and then we have myself, we have Danielle and I think that’s everything. Yeah, this position person. Oh, and a dispositions. Yeah, yeah, exactly. And a disposition guy full time.

18:06 Okay, so just to clarify, because I know, I know there’s different ways of doing business. You guys do everything over the phone.

18:13 Everything, I want to say a hundred percent but probably like 95 percent over the phone, but because we’re in, you know, virtual markets as well, we have no choice but to be 100 percent on the phone in those places. If we’re in Phoenix, if like for example, you know a seller is old and doesn’t know how to use tech or if somebody’s on the fence and just needs that, that in person touch to close because that’s just how they communicate what we’ll go out to the appointment, but we, we like to stay inside. I’m simply because we’re able to make more offers. We’re able to manage our crm because we have so many leads. The pipelines so big that you’ll have, you know, 30 new texts a day from sellers and then you’ll have ms dot calls. You’ll have new web form coming in and you have to answer those live. We have so many variables that come in, it’s almost like our sales team is like a fricken high octane, just fueled on caffeine. Just it’s, it’s, it’s cool to see. Um, but yeah, we’d like to keep it all in house.

19:07 That’s incredible. So I know you can’t really answer this question because you, you have your own call center service, but like approximately how many fulltime cool colleagues are working your, your stuff

19:18 we have for our own campaigns, about 30,

19:21 30. Wow. Okay. Um, and so how do you pay those guys?

19:27 We pay them by the hour.

19:28 By the hour. And they’re in Mexico you said? Right.

19:32 They’re in Mexico. We pay them by the hour, by dyler time. We don’t pay them for just sitting on the seat for and taking a lunch break and the gardening or whatever. Exactly. So it’s all on dialer time and then we pay them by the hour and it works out pretty good. Okay. And then as far as acquisition, how do you compensate the acquisition person? So acquisitions. So the way we onboard a new acquisition guy from, from day one, they get a $2,500 drop base for the first three months, plus 10 percent of the gross assignment income from all the deals that they produce. Aside from that, we have kickers and spiffs, um, because we have a large sales team and we love the internal competition. It’s so much fun. I’m the person who gets the most amount of contracts for that week. It gets an extra two point kicker on top of those, um, of those contracts. Very cool. And, um, and then on top of that, it seems like I’m giving away the farm, but it’s, it works out well. I’m each salesperson and goal is a million bucks a year. So, um, every quarter if they hit their quarter million for the quarter, anything above that, it’s an extra five percent kicker on top of that.

20:34 Amazing. Uh, and then your analysts, how do you help compensate the analysts?

20:38 Um, she is, um, pure, pure salary here that make sense, what that road is one of the mixture and then a disposition person. So dispositions, um, right now, um, and I, I got to kind of bring them over, but um, he was in a tryout phase, we’re giving him no commission and in five points on the gross assignment income, um, but when probably starting January first, if he’s listening, um, we’re going to put them on a, on a two and a half percent. I’m a point or two points on the gross assignment income just because like we’re, we’re scaling our marketing and obviously when you scale the marketing that the assignment revenue will grow proportionally. So like if you think about it, if an acquisition guy is making 10:10 points on a deal in a disposition, this guy’s making two and a half points. You need m five acquisition guys to make the same amount as a, um, as a dis, roughly the same proportional amount. So yeah, two and a half, a two and a half points onto dispo side.

21:34 Okay. And then, uh, Colin Farrell. So Colin, uh, he wants to know tips for building a massive buyers list.

21:41 Hmm. Well, I have this very proprietor. Now I’m not going to say, um, okay. So tips are building an I’m a data guy, right? So the great thing about our product and service that, that we deal with, everything’s public record. Um, go on core logic or Adam data and find her county, pull all Llcs, right? And then, um, if you want to find the top guys, I don’t know if this is too detailed, but if you want find a top guys, take that sheet, say it’s 50,000 buyers. Um, you can make a pivot table, sort it and see who’s holding the most amount of assets in that area, but that doesn’t necessarily mean that they’re fixing flip. It could mean, you know, they bought back in 2009 and they’re holding on her 100 homes that are not buying anymore. So limited to the last one year, buy a list and then take those llcs a skip, trace them, find the owner’s, pick up the phone, give him a call.

22:34 Okay. And just to clarify for you guys, um, I would definitely not recommend learning how to pivot. I would go on to fiverr and have for years for five bucks.

22:42 All I do, I just, I’m just going to excel like more than I’m doing

22:46 great. Yeah, I mean I recently learned in the last 12 months had to pivot. Um, and then so yeah, call them the, lock them over the phone. So we got that and then um, okay, so that’s, that was all the questions and guys please do ask more questions. Um, so we were talking compensation. Who’s in charge of the KPIS on a Georgia? The kpis. Okay. So you look at them daily, weekly.

23:10 I look at them once a month, once a month. So what we do is, because we’re so heavily reliant on converting the marketing spend, our target is a 15 percent of the cost to the revenue. So if I’m spending, for example, um, you know, and, and I guess the podcast case, 25 grand I got to be making at a minimum, I think it’s like 2:30 on that. Um, for a 15 percent of the, of the cost of the revenue that comes out like six point six times your marketing span grows. So, um, the many of the things we look, I mean, do you want me to tell you like look at, um, I think this is super, super important because the thing is now that we’re trying to scale, we’re trying to go from 25, 30 a month two, I’m about 85 grands come q four of next year among law, right?

24:02 So if you said I’m going to go from 25 to 85, I’m going to say Holy Shit, like, God, how the hell am I going to lose money? Like it’s very uncertain. But the thing that makes that builds a confidence is, like I mentioned earlier, is building that equation. So we look at, we look at everything from, I guess starting in the upper left hand corner, we’re looking at a volume of leads per month. How many of those are qualified, right? Because qualified or a volume of leads doesn’t necessarily mean qualified leads. It could be the white pages. Exactly. And then we run the cost per lead only based on the qualified leads because some lead sources are less qualified than other lead sources, right? So some people may think like, Hey, PPC is ridiculously expensive, my cost per lead is 200 bucks, but you don’t know that you’re, you’re qualified ratio is 60 percent.

24:53 Some people may say telemarketing is amazing because I’m making a lead at 2025 bucks, but you’re qualified ratio might be 20 percent. So if you actually look at the cost of a true qualified lead PPC, my, my PBC crushes it out of all my cheaper lead sources. And it’s also the highest grossing Roi. So being able to understand like where you’re most effective lead sources are relative to, you know, the revenue, how much gross assignment income each channel’s producing. And then we also break it out by market. So then we could also understand, hey look, I’m California’s underperforming. Let’s reallocate the marketing dollars to Phoenix or vegas where we’re, you know, one point five times the gross revenues, let’s, let’s make those. We were able to make those decisions a little bit more and everything runs out to the very end, which is just Roi. And what a lot of people don’t realize is they’ll look at Roi relative to time. They’re just looking at, you know, 300 percent or 500 percent, but is that over a six month sale cycle or is that over a two month sale cycle and PPC case? So running it relative to time to understand, hey look, this is our highest performing marketing channels. Let’s double down on our, on our highest ones and um, and just, and just go from that stretch.

26:05 I mean that’s a whole nother level, right? And I think that’s kind of like, I think a scaling up a was that, you know, how fast the money comes back. He, it’s not just what the return on investment is and like you said, is how fast that money comes back in as well. So very, very interesting point. I think you’re going to have to, like, you could probably sell like an MBA. You explain all that to somebody. I am not a finance guy, but it’s crazy, right? Like, but this is what it takes to be this successful. Uh, what you were talking about your Houston Vegas in here, right? Uh, so we’re, we’re talking about the monthly marketing 25 k. So what is your monthly overhead like what does it cost for you to stay in business between 25 and 30 grand a month and on top of the marketing

26:44 on top of the marketing. Okay. So that includes, um, building lease includes, um, base salaries for the support staff. Um, all the toilet paper and coffee that these guys drink. Energy drink like team outings, like everything, it, new computers for sales guys, um, gas, the whole, the whole Shebang.

27:03 Very cool. Um, so Isaac soulless wants to know what does your day to day tasks consist though? I imagine it’s got to be all over that

27:10 place. A day to day tasks. Like we’re still very heavy in the operations because I want to make sure the team right now is, is super, super strong because if there’s one, if there’s one weak point in the equation when we scale, that weak point is going to come out and it could just be a African, you know, missing link, right? Yeah. So making sure the team is super, super strong. I spent a lot of my time on continuous education, on constantly refining my analysts to, to, to learn how to underwrite specific neighborhoods, different markets, whatever it is, returns. And a great thing about an analyst is if you, if the market shifts or anything ever happens or who knows, I have one point of failure where I say, Hey Kayla, you’re underwriting San Francisco at 20, at 20 percent. Rather than communicate to sales guys, you don’t hear anything anyways.

27:59 And uh, hey guys, we’re community or we’re underwriting at 20 percent. Like it’s, it’s just, it just doesn’t happen. So I could train one person on all the numbers at any given time. I could pivot, I could shift whenever I need to. Um, because it’s a lot easier. And um, so training, right? Training, refining the systems, refining a crm, may, uh, working on the lead sources to making sure the lead sources are producing and then managing the higher level Kpis and uh, to making sure that we’re hitting numbers. We’re staying on track and also training my sales manager on how to manage the sales team to making sure that they’re hitting numbers. And they’re staying on track and they’re growing our team and just quality and quantity.

28:39 So you’re coordinating or dealing with the sales manager? Yes. Okay. Awesome. And rolled a radio. God wants to know if you have $500 to spend $100, $500, what would you spend it on for marketing?

28:53 Um, probably gas to drive for dollars, gallon gas industry. Um, I mean honestly, like if I had. Well, I mean if you’re in Arizona market, I would probably just hop on monsoon, all those little red dots you see on monsoon. That’ll pre-foreclosures. I’m go hop on there. Go find a skip tracing website called the homeowners.

29:15 Yeah. Well I think you didn’t have to have monsoon, right? You just go into zillow or Zillow, correct. Yeah. Um, okay. So are there any services that you offer? I know that, you know, one of the benefits of being successful in your industry is that you get to create systems that work for you and then you can offer that to someone else as well. Is there any services that you have available

29:37 now? I’m, I’m so focused on the operations. I don’t have time to really offer any other services, but something I am a copartner in is a, um, a company called call geeks called day. Um, it’s the team in Mexico where we’ve trained these highly, highly trained. I’m not va’s but pretty much just sales guys to make outbound calls and prospects. And that’s what a majority, that’s probably what 65 percent of our pipeline is his leads from our call center. So we offer, if you go to [inaudible] dot com, that’s where you could find more information about our telemarketing services. And then also, um, we probably spend half our marketing expense is, um, is pure data. Um, you know, I have an affiliate link with, um, with, uh, with a skip tracing website, probably 10 grand of my costs comes directly from skip tracing, like no lions, ridiculously expensive, but, um, but in this day and age you have to be proactive on getting in touch with that homeowner and that’s how we do it. So if anybody wants any skip tracing, just reach out to me and um, I’ll punch you in the right direction.

30:40 Cool. Um, and then, you know, one of the things that I saw from some other people posting, it’s like, this isn’t work right, this wholesale and he’s a scam. You guys can’t, you know, I’ve talked to some homeowners, I can’t, I can’t get them to down whatever. What would you say to them,

30:57 man? It’s like I tell my sales guys, you know, if you’re relying on one motivated seller and that motivated a motivated seller doesn’t work out, you’re not eating for the month, you got to build a robot, a robust or the poor guys, they get paid once a month. I get to build a robust pipeline. He can’t be highly leveraged on like a couple maybes, build it big. So if like one or two fall out, you have a couple more to fall back on and you have the end of the day, you gotta bring the opportunity into the door, right? It’s twofold. You’ve got to bring the opportunity into the door as far as marketing and you have to have the state sales competency to close it on the back end. If they’re saying it doesn’t work, either they’re not bringing enough opportunity to the door or they don’t have the sales competency to close it. Right. There it is. And maybe consistency.

31:46 Maybe slight possibility. Uh, so residencia a cooler wants to know, uh, where are you pulling your list from?

31:57 To be completely honest, I’m, I’m pulling list straight from the county just because it depends. So you have the county, we have list source and we have Adam data. Adam’s spell a, t, t o, m m, there’s a subsidiary of a realty track. I think everybody knows who they are. Um, so we’re pulling a. We used to pull off from corelogic and Adam data, but now it’s more county because we’re probably reaching out to probably over a million people every single month. And as you can imagine, that’s a crap load of data and if I’m, that’s the whole reason why, if I’m just targeting distress data on blowing through that and like a day. So my only option is to pull entire counties and skip trace it. And if I’m pulling an entire entire county from, you know, a vendor, you know, it’s like probably 20 grand, so I’m going directly to the county getting the CD for like $500 bucks and I’m just using that.

32:48 It’s going to Maricopa county records and getting a CD,

32:51 Maricopa county records, any they even offer, um, it’s everything. It’s a, you have your apn, your first name, your last name, mailing property, asset, class, zoning, the whole Shebang, everything you need to sort it out, throw it into a batch, skip tracing software and get all the data you need.

33:07 Incredible. Uh, okay. Um, we were talking about earlier, you know, there was some things that you do need help with your business. So, uh, particularly, uh, particularly, um, personnel, right? Yes. Uh, so what you, what, uh, what do you need help with right now?

33:21 So like I mentioned in 2019, we have a pretty aggressive growth strategy. I mean almost quadruple, no big deal. So, so right now we currently have five sales guys and we’re spending that 25 to 30 grand a month. By the end of 2019, we need to be at 11 sales guys and we’re going to be spending that 85 grand in marketing. So anybody out there have to be local here in Maricopa county who’s looking for a sales position or more of an acquisition position? Um, I’m, I, I want to interview you. They’re looking for as many qualified sales guys as we can to top 25 percent out there. If you’re interested at all, I’m just reach out to me. I’d love to talk to you.

34:02 Cool. So anything else besides those associates are just sales associates?

34:05 Um, yeah, analysts, our analysts is slowly, um, you know, at our capacity to overwhelmed. Yeah. So more of like, um, you know, an intern or an assistant. Somebody who has underwriting experience. Again, we underwrite and Phoenix, Vegas, Houston underwriting and markets other than Phoenix is not hard. We have mls access everywhere. So a great thing,

34:26 but our market and that might be why we have so much competition. Every house, almost every house is the same.

34:31 Exactly. There’s the great. I mean, the thing about going into Houston, everything we bought, house foundation issues. You have a house from 1954 on the west side. I mean it pristine, but I’m looking for um, analysts, underwriters, somebody who could assist our full time analyst and um, and, and help us out with more products.

34:48 You know, when I was trying to hire real estate agents back in the day, um, we found a lot of people that, that kind of experience in the WP Carey school. We’re trying to get to real estate. So you might want to take that idea. Um, okay. I had somebody reach out to me recently as well asking me about coaching. You know, I told him like, you know, I already spend money today. I probably would start with, I probably saw we roughly have vargas. Yeah. But what would you say if someone was looking to get coaching?

35:12 Depends on what type of coach you have, like your, your, your business and like systems coach that, you know, they’re developing the blueprint with you and helping you execute and holding you accountable. You have sales coaching, you know, for that. I recommend John Martinez, he’s been freaking awesome. I’m also, I’m Jack Daly, Jack dailies a frigging beast that guys built like six organizations of 2,500 sales guys and sold them all off. Um, so if you want, if you want sales management and sales training and how to develop an awesome culture and, and keep everybody in line and get aligned and accountable. Jack Daly, John Martinez are the best, um, on the like business blueprint side. Rafael and I know Carlos and sour on here. They’re really, really great as well. Um, I would just see which personality fit with best and go with one of those guys.

36:02 Cool. That’s awesome. Uh, so you mentioned earlier a very beginning of the interview we were talking about you’ve got your follow through process ranking, prioritizing who you’re calling. So what crm are you using to do all that?

36:15 So just like everybody in this niche of real estate, you know, we use podio. It’s not exactly the smoothest crm works for now. Um, but yeah, we have podio, um, built out. I’m actually, I’m Sal Shakira helped us out pretty much retrofitted it to, uh, to our exact sales process and business. Um, so just out of podio and we have a bunch of other ancillary tech that kind of talks to it as well.

36:42 Was a Carlos posted last night sal broke or hit their limit?

36:46 Oh yeah. Send me a picture a couple of days ago. The $55 million flows a flow. Shut him down for the month.

36:52 Yeah. You found the limit. If they say unlimited, he found the limit. Uh, so Gustavo says, Diego wants to know how you did that taxes from the money you pay in your call, your call center. How do we deduct a task considered marketing or employees? I would say marketing. What would you consider that?

37:08 I just consider it marketing, but I, I look at, I don’t, I, I try to tie everything to a specific marketing campaign. So for you know, I have, I have a cold calling, sms, PPC, rvm. I tie all the cost of labor in any vas that assist with the campaign lists and skip tracing all total adopt to that one campaign. So in this case, the Va’s, they, all their labor goes under the telemarketing campaign cost, but taxes, I don’t think we paid taxes. Yeah. Good. It’s a good system. I mean not, I mean, not like irs. We don’t, we don’t pay Mexican taxes.

37:46 Irs ignore that last comment. Uh, and, you know, run around it, right? Of course. Yeah. So he says, uh, you know, wants to say hi from Houston itself. Uh, Haley I’ve ever thought about using a call center to help me answer calls and set appointments for yourself. So an inbound call center. Do you have anything like that

38:02 on? The thing is we don’t really go on appointments, so if we, if we hired actually it’d be really, really effective. Um, what we do is qualify the lead and then they push it over to our crm and our sales guy that then makes a determination if that’s qualified or not qualified. We don’t want to leave that determination up to the va necessarily. Yeah. So I’m all inbound, I’m all comes into our sales floor, so our inbound from our website calls, like any, like super distressed campaigns, um, you know, how people like bill send an rbm and send it to voicemail if it’s like a pre foreclosure list. I just wrote that on a simultaneous called to our sales floor because they’re higher priority calls. Um, but everything is aside from the telemarketers who are, who are doing the prospecting and they get the call back. So those all go back to that, back to the center. But anything that’s inbound that’s already a qualified lead comes into our sales floor.

38:58 And I guess that round Robin Round Robin or whoever is closest to the phone, simultaneous calls. So everybody’s phones ring at one time. First one to pick up gets the lead was hungrier. Whoever sound rear. Awesome. I love that. Uh, okay. Are there any other tools or systems that you can live without?

39:16 Tools? Systems besides the ones we kind of built ourselves like probably like a call rail. Um, our dialer. Yeah. What do you use for a dollar? So right now we use an x five. Why tell product? Um, it’s, it’s pretty good. Um, but we’re thinking about transitioning over to a new dealer. That’s what our, that’s what our um, our tele or center uses. But I’m thinking about, and this is pure testing phase, putting our entire team on a dialer. Um, so they’re, they’re all connected and um, and have live inbound transfers from our call center over to our sales team because the thing we think we found out was a lead that comes in from the center. There’s like a 50 percent chance that we’re actually gonna they’re going to pick up the phone and we’re going to continue the conversation.

40:06 Right. That’s the hardest part of a handoff.

40:09 Exactly. So being able to shorten that are close that gap rather and just have it have like there has to be a certain amount of check boxes. I think they would have to check off before transferring, like do they want to sell within 30 days and is there any low points of motivation and if there is transfer them over regardless of price. So we continued the conversation and either choose to tie it up right there or put it in a more high priority, get it to underwriting and get it back so we could deliver an offer.

40:35 Cool. Awesome. Uh, what would you do if the market slowed down or take a dip?

40:42 So the great thing about our model is we make money in an up market and we make money in a down market. So I’m from a more of a, like a holdings perspective right now. We’re Kinda, we’re putting the balls in motion on how to structure certain types of funds so we could, um, so if that, when that time ever does happen reason this reason, this period between whenever, whenever that is, I have no clue when that’s going to happen right away. But, um, we’re, we’re getting, we’re building rapport with private money guys. That’s why we’re flipping. We’re, um, we’re showing that we’re getting them a track record showing them that we’re reliable. We do what we say we’re going to do. So when the time comes, we’re easy to pull those funds in for a larger, larger aggregate pole. So we could then go buy those assets strictly on a cap perspective.

41:33 What is my why, you know, as I always think about this and like, so my why is. So the thing went out when I was growing up was I’m like a super convenience guy. Like I’m about, I’m the guy who was sell my house to a wholesaler because it’s quick and easy. Um, so like saying that like, like turn, like worrying about stuff like turning off lights and like, uh, not like going someplace and not wanting to buy whatever I wanted on the menu. Like it sounds stupid, but like I want to do whatever like I want to do at any given time. Like, so being able to achieve that I guess. I guess through like money I got money, money solves, solves a lot of problems. Does it solve all the problems? But I’m more than 90 percent of them and more than. Yeah, when you say money doesn’t buy happiness, you don’t have any. So a boiler room. Um, I always like to think of a WHO’s that Danny, who’s a, um, he had a show on comedy central versus like, you know, like you say, money can’t buy happiness, but ever seen a guy on, I’m on a jet skis, frowning.

42:47 Um, so just like, just being comfortable, it’s that peace of mind knowing like everything’s okay. I think it’s what it really is, so peace of mind and it’s not really a financial freedom is really just freedom. Complete complete freedom. Exactly. Awesome. I say that now I say like I want to, I want to build this company and build this cash flow business so I could go like not do anything but like go, like travel. But like my personality, I always think about it like I’m always, it just, it just goes to never retire, never retire. I’ll try. Uh, what is your superpower? My superpower? Probably honestly, probably probably the systems and processes side, being able to break down an issue and then systemize it, um, in, in the most effective way. Efficient way possible. And I’m, my biggest problem, not super power is probably delegating.

43:44 So I can build, I can build the system all day. That’s the challenge. If people are good at things, I can delegate. I hate, I, I don’t want to be the, I don’t want to be the best. Um, because like, um, like the frigging, like if you look at the, I forget what it’s not rich dad. It’s like that quadrant and like personality quadrant. Like I’m the, I’m the on the ass, like I’m the fricking surgeon that could get down and like do it. Uh, I can’t, I, I just gotTa get away from that, you know. So like I’m really good at building systems but being, being able to have somebody manage that system and, and execute and complete it. Um, that’s kind of my weakness. Interesting. Um, what is your favorite best or most interesting failure man? Curveballs? Yeah. I’m most interesting failure. Um, I don’t know, maybe maybe on, you know, when I was doing the flips and construction maybe I realized that wasn’t something I wanted to do. I think it’s like, I don’t have like any, like big failures are a bunch of like little micro failures that happened like almost every single day. So like every single day I’m learning, I don’t have like, you know, I crashed my car when I was drunk and now I don’t drink and drive anymore. It’s like I, I try to make the best decisions I can and like as things come up, these little micro failures, I just, I just log into the back of my brain. Does that never happen again?

45:08 Justin’s who you guys you go. Exactly. Okay. And then Chris Jackson mentioned that there’s a smartphone to io that I don’t know if you know her, did that, but excited podio and hasn’t has a multicellular. So just something he pointed out there. So, uh, what is the ending of the show? What is one thing that you want to leave with the listeners?

45:31 Um, well, so if you’re, I guess if you’re just, you know, just getting started and we were all there at one time, right? Yeah. Like the biggest thing was like it just, it’s just understanding what you want because in real estate there’s a thousand ways to skin the cat and make money.

45:48 That’s crazy in the real estate agents, how many different ways there are to make money in it,

45:52 so it’s so easy to get shiny object syndrome and we all do it and that’s a big. My biggest growth like when I first started like three or four years ago was let’s start a fricking direct mail center. Let’s do this. Let’s see. Like an egg. We never focused. Nope, we’re never align on one singular focus. One target, one number. And what I’ve done now is really trying to pull it all together. I mean, yeah, you get distractions, but you just gotta like put your like horse blinders on and just go. I’m so anybody just getting started pick. I mean yeah, I figured out what you want to do, pick one thing and don’t get distracted. Like envision, like the mentally vision, what that looks like because thing is you have to paint the picture for yourself. If you don’t pick the picture and you’re not already living it, you don’t know you, you already don’t, you don’t know what it takes to get there. So figuring out what that is, paint the picture, have like some compelling vision that’s compelling enough for you to actually get out of your ass, get off your ass and actually take action and take a little bit of risk and just go for it.

46:51 That’s amazing. Um, and you know, again, that’s under sell what you’ve done, but you know, $250,000 a month, like it was only three years. You put your head down, focused, know your vision and go after it. It is possible you’re living proof and I think that’s awesome. Exactly. All right, so guys, don’t forget, we do have the monthly meetup tomorrow night for 30. Jamil is going to be talking about how KeyGlee works. He’s basically giving a presentation on what KeyGlee does. Beast. It’s unbelievable when you showed it to me, honest, as little intimidated or you to record that because I’m not going to be here so I’m not going to. Yeah, I’m actually talking to her. I but recording it, so we’ll see how that goes, see how it works, you know, I’ll be the first time we’ve done it a, but it’s actually very intimidating what they’re doing. It’s like, I don’t know if we can catch those guys. Yeah, well they’ll share it to anybody. Just give me the video. I don’t want the competition competition. Um, and the next week is going to be our last episode for the year and we got Max Maxwell flying in from Carolina. So that’s going to be an awesome show. So that’s it. Thank you guys for watching and thank you. This was incredible. Appreciate it. Thank you.